Nigerian businesses recorded 320 deals worth $5.7 billion (N2.41 trillion) in 2022, representing an average of one deal every working day. This is according to the recently released 2022 DealsBook Report, compiled and published by Nairalytics, the research arm of Nairametrics.
Compared to the previous year, deals value decreased by 35.8% from $8.88 billion recorded in 2021, while the number of deals surged by 80.8% in contrast to the 177 deals recorded in the prior year.
What you should know: Deal-making, which encompasses various forms of capital formation activities such as venture funding, private equity funding, mergers and acquisitions, grants, equity raises, seed and series funding, and corporate bond issuances, is essential for both startups and listed companies in Nigeria.
Specifically, It provides the companies with the necessary capital to expand their operations, launch new products, and scale their businesses. Additionally, the availability of capital through deal making also helps to attract foreign investors, lenders, and fund providers, which has a positive impact on the economy.
Highlights of the report: Nigerian startups dominated the list of companies captured in the review year, accounting for over 75% of the total volume of deals.
- Seed/Series Funding was the most popular with 120 deals valued at $1.08 billion (or N453.55 billion), followed by a Venture round with 76 deals valued at $105.55 million (or N45.69 billion).
- In terms of deal value, Investment was the largest deal type with a value of $1.25 billion (or N523.57 billion) across 19 deals, followed by Commercial Paper Issuance with a value of $1.09 billion (or N461.88 billion) across 14 deals.
- The Fintech sector had the highest number of deals in 2022, accounting for 80 out of the 320 deals that occurred within the review period.
According to the document, The Largest deal for the year was a $709 million Investment in Bolt by undisclosed investors. Meanwhile, Google, Techstars & YCombinator were the most prolific investors in the review year, with Google & Techstars recording 23 and 22 deals respectively, while Ycombinator accounted for 20 Deals.
The telecommunication and ICT sector recorded the highest fundraising during the year at $1.05 billion, followed by FinTech and logistics/transportation sectors with $777.3 million and $745.7 million respectively.
Why you need the DealsBook: Owning Nairametrics’ DealsBook report provides valuable insights into the capital formation activities of Nigerian corporates throughout the year. It is essential for investors, analysts, entrepreneurs, and policymakers, who seek to understand the capital raising and investment landscape in Nigeria.
- The report provides detailed information on the types of deals, the sectors that attracted the most investment, and the companies that raised the most capital, among others.
- By understanding the trends in deal-making, investors can identify opportunities to invest in promising startups or companies, while entrepreneurs can use the information to identify potential investors for their businesses.
- Additionally, policymakers can use the information to make informed decisions on policies that would support and enhance the growth of the economy.
Overall, owning the DealsBook report provides access to valuable information that can guide investment decisions, support business growth, and contribute to the development of the Nigerian economy.